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After just being hit with an almost 30% premium increase from Mutual of Omaha (MOO), I’m shopping around for a new Medicare Supplement carrier.
I actually like MOO for their generally good customer service, user friendly website, and fast claims processing. Twice in past years, I’ve been able to stay with MOO but avoid a price hike by switching to one of their sister companies, which I wrote about here.
It seems that option is no longer available, hence my looking into other carriers. I’m fortunate to have good health and should be able to pass medical underwriting.
I’ve gotten somewhat lower quotes from Humana and Cigna. I’ve gotten substantially lower quotes from two less familiar names: Banker’s Fidelity (part of Atlantic Capital Life Assurance Co.) and Wellabe (formerly Medico).
I’d appreciate a post from anyone who’s had experience with any of these companies, including their recent history of premium increases, customer service, website user friendliness, and claims processing. I’m particularly interested in hearing about Wellabe/Medico.
Thanks!
Here’s my sorry tale: Years ago, when I lived in the Philadelphia area, I bought Medigap Plan J from Bankers Life. I. bought it because it had good coverage for traveling abroad. However some time after, the government abandoned Plan J because, they said, its many features were at last being duplicated by other plans. I could stay in Plan J, but obviously, in an aging population, its numbers would be decreasing and so I would be facing higher premiums. Sounds like I should get into another plan, right? But I was not informed about this development, and when later I went to investigate what happened, I found out the broker who sold the plan to me had died. Was that how I was overlooked? And also then I moved to Texas. I became aware of what a pickle I was in when Banker’s Life agents started calling me to get me to switch to another plan. But by this time, I was 70-something years old and tricky health problems were showing up. So I could not pass the underwriting to get into a more reasonable plan. The premiums increased though these years to over $500 a month!
Of course I started to investigate: 1) Banker’s Life agents were no help; 2) my local state representative also no help, but 3) the Texas Insurance Commisioners office activated a conversation with a Banker’s Life guy who at least went back to the drawing board to document that I have paid more in premiums than have been paid out even with the various medical interventions necessary for me. At least there was a conversation, as opposed to what happens when I speak with most people, who don’t understand how Medigap works and don’t understand that Plan J is an actual plan takes no new people to cover. The Texas state insurance commission folks have said that they have done what they can, and now I have to speak with the Pennsylvania insurance folks, because that’s where I first bought my plan. One outcome: Banker’s Life has stopped increasing my premium every year, and I hope that holds. Thankfully, Plan J works still as far as getting good coverage with all the docs I see, and I don’t pay deductibles, etc. But today at 82 years old, relatively healthy and swmming laps every day, I’d love to get into a bigger “community.”
I suspect I’m going to wind up in the same situation with Plan F. If you’re lucky they will discontinue the plan and then you can enroll in a different one without underwriting. There are four states in New England that don’t allow underwriting, and I believe California allows a limited switch once a year. Good article on Medigap here.
The prospective elimination of F and declining population and growing claim risks for it is why I selected G and there is only coverage for the Part B deductible that is different.
Unfortunately I selected F before it was discontinued and I fail underwriting.
What is your premium now?
I strongly recommend you go with one of the major supplement players. When I was on Medicare due to disability I purchased Plan G from a no-name company (Shenandoah Life), based on the recommendation of a supplement broker who said, “plans and benefits are all the same so buy the least expensive.”
My insurer stopped issuing new supplement policies the following year, then proceeded to increase my premium from $250 to over $550 the next three years. Due to my disability I was locked in until age 65, at which time I got another shot at guaranteed issue.
Needless to say, this was a very expensive lesson. Don’t make my mistake. Go with an insurer who has a substantial presence in your state.
Anyone on Medicare who is “healthy” enough to change Medigap carriers because they can pass “underwriting” is very fortunate. My wife and I have found that underwriting is very strict for most all companies you would want to change to. I recall when going on Medicare to pick your supplemental carrier carefully since there is no underwriting the first time. Still good advice.
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We went with Plan F (discontinued, but still in place) from United Health Care – AARP. It was a great choice. Rates keep increasing, but I have no plans to change as the savings do not appear to be significant.
As @RQuinn points out, all the insurers offering MediGap coverage at a given plan level (ie, letter designation) must offer the same benefits and coverage. At that point, it really shouldn’t matter which one you go with, so why not go with the lowest priced one?
The only difference I could find was that there was exactly one insurer whose offering included a fixed price premium that would not change forever. I don’t recall the ins and outs of this, as I ended up going with an Advantage plan, but you should be able to easily find out about this option as you do your research.
I recall when I was exploring these options that the tradeoff between guaranteed flat fee at a higher starting cost per month versus a lower-cost starting fee that had no cap was pretty similar to the logic one might apply to buying an annuity. You’re faced with decided whether you should bet on outliving the actuarial assumptions that the insurer used to set the prices.
Please be aware that even though the structures of the different plans are identical the prices will vary according to where you live.
It sounds like you are referring to issue-age Medicare supplement policies. Except issue-age policies can (and do) have premiums increases. KFF has a good article explaining the 3 pricing structures of Medigap plans: https://www.kff.org/medicare/issue-brief/key-facts-about-medigap-enrollment-and-premiums-for-medicare-beneficiaries/.
From the article:
There are three different rating systems that can affect how Medigap insurers determine premiums: community rating, issue-age rating, or attained-age rating.
Community rating: The same premium is generally charged to everyone, regardless of age or gender. Premiums may go up because of inflation and other factors, such as smoking status and residential area, but not due to age.
Issue-age rating: The premium is based on the age of the beneficiary when they purchase the Medigap policy. Premiums are lower for people who buy at a younger age and will not change as they get older, but premiums may go up because of inflation and other factors, such as smoking status and residential area, but not due to age.
Attained-age rating: The premium is based on a beneficiary’s current age, so the premium goes up as they get older. Premiums are lower for younger buyers but increase as they get older, which means that premiums may be the least expensive at first but can eventually become the most expensive. Premiums may also go up because of inflation and other factors, such as smoking status and residential area.
States can impose regulations on which of these rating systems are permitted or required for Medigap policies sold in their state. Currently, nine states (AR, CT, ID, MA, ME, MN, NY, VT, and WA) require premiums to be community rated among policyholders ages 65 and older (Appendix Table 4). Four states – Arizona, Florida, Georgia, and Missouri – permit issue-age rating but prohibit attained-age rating, while the majority of states (37 states and D.C.) allow any rating system.
And, at least with United Health Care, which is community rated in my state, they give declining discounts to people as they get older. As a result my premiums go up June 1 each year and when I get a year older (due to the declining discount).
Right. Issue-Age rating is the one I was referring to. Compared to the other options, which will likely increase a lot between 65 and death, IA plans will only increase at the rate of inflation so long as one stays in the same place (and doesn’t start smoking).
Where in I live in Northern California, there are about a dozen MediGap insurer offerings, only one of which was IA. The rest were all AA.
Go to Medicare.gov and you can look at all the plans offered in your state. Remember that unlike health insurance for those under age 65, these plans are standardized. So a “G” plan from MOO is that same coverage as Blue Cross, or United Health care or any other company.
One thing to remember is you do not have guaranteed acceptance. As a result, a new company can check your health history and change your rate for what they see. Do not cancel your existing coverage until you have a new policy in force.
Also, at the bottom of that page are some tips for purchasing a Medicare supplement.
And if you fail medical underwriting you will discover all sorts of things in your medical record that is wrong!!! Who knew I had chronic pancreatitis (had it once 9 years ago), diabetes with neuropathy (only have neuropathy which is hereditary and not even pre-diabetic) and the list goes on and on. Fixing this stuff is a nightmare. For medical underwriting the health facility needs to issue a medicare billing correction, you can’t just fix it in your medical record.
They can also refuse you altogether except under very specific circumstances.
Thanks for the additional comments. Evaluating Medigap carriers is difficult. The process by which they increase premiums, and what future increases will look like for a particular carrier, is hopelessly opaque. Even the most knowlegeable brokers usually admit they can only guess.
I had a Medigap Plan G with MOO for years and was generally happy with them, but premium increases drove me to switch to Blue Cross Blue Shield last month. My health insurance broker suggested BCBS, and so far, so good.
We use AARP’s United Healthcare plan N. So far we’ve had no problems with them
Just started Medicare last year, but after one year with Humana, I am happy. Humana paid everything as expected. Easy to understand EOBs. Just received notification of a rate change for the coming year. It is a buck or two less than the current $77/month I am currently paying. Your options and pricing are very dependent on where you live, as you know…
You have a Medigap policy that cost $77 a month? What Medigap plan is it? That is incredibly low.
Yup, I thought so too, as in there’s no such thing as a free lunch, but after researching customer satisfaction among other things, I went with it. It is called Medicare Supplement Plan Hg, if that means anything to anybody.
You might have a high-deductible G plan. So, you pay the part B deductible, $257, then Medicare pays 80%, and instead of your supplement paying the next dollar, you are responsible for the first $2,750, then the supplement kicks in.
Is that what you wanted?
I recall that Medicare Supplement Plan Hg has similar benefits as Medicare Supplement Plan G, but with a high deductible. Generally, the high deductible is ~$2,800/year. You pay the first $2,800 (or whatever your high deductible is) before the plan starts covering your healthcare costs. Do you know what your high deductible is?
Been with Aetna for many yrs. Thought all the carriers had similar benefits
Its only 20% of Medicare payment
They must have the same benefits prescribed by law and the option you select. All plan G for example are the same. The premium reflects the cost of care and hence Medicare allowed fees in an area, the utilization by the enrolled population and to some extent the efficiency of the insurer.
Our premiums are $271 and $292 a month for Plan G, but they are age based.
I’m in my fourth year with AARP Humana. Being in Michigan, this the best deal I’ve found for Plan G. Prices go up ever year in May, but still very competitive. No issues with claims or website. Never needed customer service. My wife will begin shopping next month, so we’ll see how the market looks.
Ah and one more, my next backup plan (should Bankers not pan out before the end of my 6 month) 🙂
Go with either Physicians Mutual innovative plan G or go with United American plan G HD.
PM Innovative automatically converts to a regular Plan G after 2 years – my understanding is that they too raise the premiums but “Rate increases are almost always lower than any plan G that is less premium than a PM Innovation G”.
Whereas with United American you can elect to convert to their plan G (not automatic unlike the PM I plan). and I understand they provide sort of ceiling for premiums
I will give you my experience on this (FWIW – for what it’s worth), after doing bit of research (pulling data from SERFF (System for Electronic Rate and Form Filing), normalizing the data into a spreadsheet, etc.), I went with ACE Plan N (I was partly smitten by the Chubb reputation) – they had been in the market for just a few years, had a good medical Loss Ratio (around 70%) and were trying to grow their market. All of this augured well in my book, I reasoned that a company with good stats and trying to grow would not close their book. Much to my chagrin, 2 weeks after my enrollment (May, 2025), I learnt that ACE had “closed book”. From what I have read, this usually leads to a death spiral in terms of the premiums since there are no new (and younger) enrollment to share the risk.
Since I was still within my 6 month period, I went back to the drawing board and went with Bankers Fidelity, they have been in the market for about 10 years, their “live insured” are 15,000+ and 267 (nationally and in my state) as of end of 2023.
Again based on my reading, MOO is one of the worst offenders in terms of book closures. I understand as well that all of the big boys (with the exception of UHC & BCBS) do this as well. UHC tends to have sharp premium increases (and with their current set of woes, premium hike was a given in my mind) and BCBS generally tend to be on the higher end.
My conclusion? It is bit of a crap shoot for those us not living in a state that has a birthday or anniversary rule.
Good luck and do let us know what you decide.
Thank you for all the posts so far. Very helpful.
I have had both United Health and Humana plans. I found UH’s EOBs much easier to read. Also, UH is the only company in my area that uses Community Rating. I saw no difference when it came to paying claims.
Andrew, A quick search should reveal who are the top healthcare insurance companies in your state. That said, I checked with our primary care doctors office when we were enrolling in a plan, And while they don’t like to recommend one company over another, They did inform us that our current carrier was a good payer And they had no trouble with the claims they submitted, Which were paid promptly.
The only problem we ever had were with providers of service who coded various tests and procedures incorrectly.. In addition, sometimes they slip up and don’t bill your secondary insurance For the balance Medicare doesn’t pay.
Look for the best service not the best price. We were never sorry we opted for a top rated company. You just never know what medical issues will turn up and the stress that alone can bring.
good luck in your search
I think Medicare automatically forwards the processed claim to Medigap for the remaining cost (20% for Part B). If Medicare pays, Medigap must pay.
I have Wellebe/Medico’s High-Deductible G Plan. The low-end monthly premium was an attractive $38.93/mo. at signup earlier this year. But I also learned my premium would rise to $48.15/mo at my 1-year anniversary date in 2026, a considerable 23.7% increase.
So I’m also considering an alternate policy while I still have the right to switch without medical underwriting (a few more days only).
Banker’s Fidelity (underwritten by Atlantic Capital Life Assurance Co.) is $41.67/mo., but with only 1 year of experience in my state (Texas) and only 22 lives insureds in my state, it’s just not worth taking a risk on a new player. (Update for 2025: They now have 2 years in the market, with 871 insureds in Texas.)
Mutual of Omaha has 60 years in the Texas market and almost 38,000 lives insured in my state, so their premium of $45.86/mo. is my main alternative. It may also have a price increase before my anniversary date in 2026, so there may not be enough of a difference to make a switch by the end of this month worthwhile.
Wellebe itself seems just fine. Since my medical expenses have been very low this year, I have not reached the $2875 deductible — and therefore they have not had to pay any claims.
I switched to United Healthcare’s Plan G with Renew Active not because it was cheaper but because it covered my Picklr membership which would have cost me $130 a month. They did raise my annual premiums 15% but the ancillary benefits are worth it.
And the irony is that they call them “free” benefits. Their G without those things (available in some states but not all) are significantly cheaper. So much for free.
Try AARP.
Shopping for Medigap is unlikely to do much good and any benefits temporary.
There are variables in insurer’s efficiency, but they are all faced with rising health care costs and subject to changes in Medicare payments and increased deductibles.
2026 is projected to be a bad year with significant increases across all health insurance.
A carrier with really low premium may attracted the health care users that cause adverse selection leading to higher premiums in the future.
The last thing is that carriers are closing a ton of advantage plans (MAP). Those folks can switch to whomever they want without undergoing medical underwriting (called guaranteed issue). The sicker will move to supplements as in the long run they are cheaper (MAP’s usually have very large out of pocket maximums) which will drive up those premiums due to adverse selection. The rest will move to other MAP’s as the premiums are cheaper and they aren’t using their insurance much. YET. When they do have to use it more the odds are against them being able to pass medical underwriting to switch. Then the only way out is switch to an MAP that is likely going to be terminated (a lot are going to be in some markets in 2026 – the lists are starting to come out) so that they then can have guaranteed issue to switch to a supplement.